FRC backs Turner's cycle reserve plans

The Financial Reporting Council (FRC) said it supports Lord Turner's suggestion of an 'economic cycle reserve' (ECR) to bolster bank balance sheets.

The FRC has promoted the idea of an ECR both within the UK and through the International Stability Forum.

Just before the Turner review was published, the Accounting Standards Board (ASB) held a meeting of 40 representatives including investors, accountancy firms, banking industry representatives and regulators to discuss counter-cyclical measures.

An ECR would be built up during the upswing of the economic cycle through an appropr